That does not mean that fraud should be legal. Stealing from stupid people is still stealing. Stealing from greedy people is still stealing. I don't understand how this is controversial.
But yes I agree fraud should be illegal and misleading advertisement is a bit of a fraud already, mis-representation of facts.
But informed people are hard to mislead, the question is who can you trust to give you correct information? I say that is best done by a democratically elected government.
The job of government is to protect us, not only from hostile foreign powers, but also from fraudulent information. Sometimes the two go together. Not all governments will protect us against fraudulent information, only the representative, democratically elected ones will.
Please no more regulation, or American influence/special position ("I can get my money back, because you sold me a security, and the price didn't went to the moon").
Fraudulent ICOs are written and warned about wide and far. It is easy to do due diligence. People who don't research any of their investments, need no more protection, than those who put everything on black, buy art that devaluates in value, or buy a second-hand Zune for their grand children.